A trustee 'lives' by the trust deed. It governs what the trustee may or must do with the trust property including the acquisition and disposal of trust property and distributions of income and capital to beneficiaries. Some of those choices will have significant tax consequences. Various tax laws determine when an act done by the trustee such as the distribution of income or capital or the sale of a trust asset are taxed and in whose hands. The results will be different according to the type of trust. It is essential the trustee is properly advised on the tax consequences before making decisions about the trust property.
This presentation is aimed at lawyers and other professionals who don't specialise in tax but who want or need to be able to identify the tax issues when advising trustees and beneficiaries to help them decide when to seek further advice. It gives a structured and logical introduction to the tax rules for the most commonly encountered trusts in SME accounting and legal practices. It is also very useful for those who simply want a refresher on the basics of the taxing of trusts or who are new to the area.
Topics covered include:
- how are trusts treated for tax purposes
- special tax rules for taxing trust income and distributions (trustee, beneficiaries, minor beneficiaries, franking credits)
- CGT Events for actions concerning trusts
- taxing special types of trusts
- deceased estates
- testamentary trusts
- child maintenance trusts
- other excluded trusts
- foreign trusts
- family trust elections/trust losses.
This was also presented by Steven Rosenstrauss at the 'Tax and Trusts: The Essential Trusts' seminars held in Sydney on 5 April 2006 and 27 February 2007.